Terminology & Concepts | Stocks | Bonds | Money for Emergencies, Education, & Retirement | Forget Money Lets Talk About Socializing |
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What is rate of return
This represents the total value (in percentage terms) of what you earn on your investments
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What is ownership
This is what shares of stock represent to the buyer
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What is loaning money
You are doing this when you invest in bonds
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What is an emergency fund
Because liquidity is important for this type of account, money market accounts may be a good choice for this type of savings
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What are Networking events
These events are regularly attended by young professionals and designed for attendees to meet additional people
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What is investment income or passive income
Dividends, Interest and rent are examples of this
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What are capital gains and losses
This is what you receive when you sell shares of stock for more than or less than you paid for them
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What is face value or par value
The amount returned to the bondholder at maturity is called this
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What is a 401k
This extremely common type of retirement account is generally offered by companies when employed and may sometimes offer a match to their employees
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What is a cold call
This is when you speak to someone for the first time over the phone without any prior relationship, warning that you will be speaking to them, or request to be contacted
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What is Diversifying
Doing this to your investment portfolio will reduce risk, but it will also reduce return
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What are blue-chip stocks
Stocks issued by well-known companies with sound financial histories are categorized as
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What are corporate bonds
These bonds are issued by corporations to fund additional expansion or projects
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What is a Payday Loan or Cash Advance
These type of loans generally give an advanced on your next paycheck, but often make borrows pay substantial money for a one to two week loan
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What is a 30 second commercial or elevator speech
This is short summary of what someone does for a living that is often used at networking events, in introductions, or in tight spaces like elevators
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What is a bond
This type of security is issued when a company prefers to take on debt to raise capital as opposed to giving away ownership
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What are defensive stocks
These stocks are issued by companies whose earnings move inversely to the broader economy, may increase during economic downturns, and generally pay dividends
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What is state income tax
This does not have to be paid on interest earned on treasury bills, notes, and bonds
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What is 67 years old
This is the normal social security retirement age for those now graduating college
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What is a Natural Market
This type of market refers to that which consists of family and friends
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What is liquidity risk
This type of risk symbolizes your inability to get cash from your accounts
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What is preferred stock
This type of stock has no voting power but receives preferential rights with regards to profits being paid out
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What is interest rates
This rate influenced by the federal government can have a significant impact on how much interest a bond my earn
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What are qualified tuition plans or 529 plans
These education plans have tax-deferred growth and distributions from these plans are excludible from gross income if used to pay certain educational expenses
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What is Bonding and Rapport or introductory conversation
This is the meaningless chit chat that takes place at the beginning of a meeting surrounding common interests, but often is simply a bridge to the talkers true purpose for the conversation (Ex: It's a nice day outside)
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